Iran Finds First Caspian Sea Oilfield in 104 Years

Iran has discovered its first oilfield in the Caspian Sea for more than a century, the state-run Fars news agency reported today.

The deposit was found at a depth of 2.5 kilometers (1.5 miles) during drilling on a natural-gas field and may contain 10 billion barrels of crude, according to the National Iranian Oil Co., Fars said. The strike is the first in the Caspian Sea for 104 years, the agency cited Khazar Exploration and Production Co. Managing Director Ali Osouli as saying.

While Iran is the second-largest oil producer in the Organization of Petroleum Exporting Countries after Saudi Arabia, most of its known reserves are in the south and the Persian Gulf, and it doesn’t yet extract crude in the Caspian, where nations including Azerbaijan are tapping large deposits and demarcation lines over territorial claims are disputed.

Iran currently has proven crude reserves of about 151 billion barrels, according to the OPEC website.